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Gap Analysis for HP Gas                       Debashish Joel                    Divyanshi Gupta                   Iris Cha...
HPCL•   Second largest LPG manufacturer in India•   Over 21 million customers, network of over 2200 distributors•   Remova...
HPCL•   Existing customer(mainly urban) satisfaction depends on –    Safety, convenience, quick delivery, right weight etc...
Customer GapCustomer expectation of service qualityRural customer: Safety, value for money, accessibility, right weightUrb...
Listening GapMarket Research OrientationAdequate research has not been done.The rural markets and the urban non-users shou...
Standards and Service Design              GapProper Service DesignPhased rollout of incentive programs shows existence of ...
Service Performance GapEffective HR PoliciesNo mention in the case though overall service quality excellencesuggests HR po...
Service Performance Gap                               (Contd) Urban customersAttributes                Degree of importanc...
Service Performance Gap                          (Contd)Rural customers  Attributes                      Degree of        ...
Communication GapIntegrated Service Marketing CommunicationsPartnership with JWT“Ji Haan” message consistent with the bran...
Hpgas final
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Hpgas final

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Hpgas final

  1. 1. Gap Analysis for HP Gas Debashish Joel Divyanshi Gupta Iris Charu Gomes Murali Krishnan S Nagappan Krishnan
  2. 2. HPCL• Second largest LPG manufacturer in India• Over 21 million customers, network of over 2200 distributors• Removal of subsidies - Seller’s market to buyer’s market• Need to improve service delivery and build a strong positive brand image• Untapped rural market and saturating urban market
  3. 3. HPCL• Existing customer(mainly urban) satisfaction depends on – Safety, convenience, quick delivery, right weight etc.• VAS – Delivery within 24 hours, 8 am to 8 pm delivery, new connection in 24 hours, 4-digit IVRS for booking and inquiries, refill booking through internet• Millennium distributors• Guaranteeing the right weight through “promise yahi, weight sahi” campaign• Strong positive service and greater satisfaction among the customers through “Ji Haan” campaign resulting in “HPCL, a well behaved, responsible, high profile, kind at heart person”
  4. 4. Customer GapCustomer expectation of service qualityRural customer: Safety, value for money, accessibility, right weightUrban customer: Safety, convenience, timing of delivery, right weight,quickness of deliveryCustomer perception of service“Well-behaved, responsible, high profile, kind hearted person”Reliable and quick serviceService quality – Bingo!Product quality – No evidence to suggest anything wrongPrice – “High Profile” suggests that it is perceived as premium.Customer Gap – value for money, timing of deliveryHow the company is filling the gap – smaller 5 KG LPG for rural areas, Rasoi Ghar initiative. No action on “timingof delivery”•
  5. 5. Listening GapMarket Research OrientationAdequate research has not been done.The rural markets and the urban non-users should have been researched separately.The results of the customer satisfaction survey are not generalizable to non-users and rural customer.Upward communicationNo evidence of any issuesRelationship focusExpectations of different segments differ between urban and rural market.Company is focusing on relationships rather than transactions. This is evident the customer loyalty programmeService RecoveryEmergency call center and Medical insurance are examples of good service recovery mechanismProvider Gap 1: Research not generalizable, rural segments and non-users should be studied separately.How the company is filling the gap – No mention about this in the case
  6. 6. Standards and Service Design GapProper Service DesignPhased rollout of incentive programs shows existence of service development infrastructure.No evidence to suggest any loopholes in the service development infrastructure.Customer-Driven StandardsThe weighing initiative came from the customer apprehension of ensuring right weights. This means HPCL’sstandards are customer driven.Appropriate physical evidence2 exclusive filling plants for rural areasThe distributor network expansion from 1000 to 1900 distributorsProvider Gap 2: No Gap
  7. 7. Service Performance GapEffective HR PoliciesNo mention in the case though overall service quality excellencesuggests HR policies are effectiveEffective Role fulfilment by customersNo data given to evaluate the role fulfilment by the customers. Perhaps, if % of people adopting loyaltyprograms is known, we can comment.Effective alignment with service Intermediaries“Millennium Distributors” is a good training initiative that suggests HPCL aligns its service intermediaries withits own imageAlignment of Demand and SupplyNo data available
  8. 8. Service Performance Gap (Contd) Urban customersAttributes Degree of importance PerformanceCorrect weight Very important GoodSafety Very important GoodTiming of delivery Very Important Average. Working women may want the cylinder to be delivered at a particular time.Quick Delivery Important GoodEnvironment friendly Not important Good
  9. 9. Service Performance Gap (Contd)Rural customers Attributes Degree of Performance importance Value for money Very Important Good Accessibility Very Important Average. 60% of India is rural. Only 2 rural plants? Right weight Important Good Awareness Important Poor. No mass awareness drive by HPCL yet. Environment-friendly Not important Good Provider Gap 3: Less rural plants, Very little rural awareness programs, Urban timing of delivery How the company is filling the gap – Expanding the distributor network is a good sign but much more required
  10. 10. Communication GapIntegrated Service Marketing CommunicationsPartnership with JWT“Ji Haan” message consistent with the brand image of well-behaved, responsible andkind-hearted person“Promise Yahi, Weight Sahi” campaignPricingPerceived to be a premium product. HPCL should create, communicate and deliver more value for the pricebeing charged.Provider Gap 4: Not communicating value for the price chargedHow the company is filling the gap – By providing services like distinct value-added services like Internetbooking etc., the company is on the right track

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